King Move May Hint of More Fun Ahead in Videogame Market

Signs that King, maker of the popular mobile and online game “Candy Crush Saga,” is interested in going public underscore the growing optimism about future fortunes of the videogame market.

Midasplayer International Holding.

“Candy Crush Saga”

The Wall Street Journal reported Tuesday that the London-based company, which is registered as Midasplayer International Holding Co., has hired investment bankers with an eye towards an IPO.

King’s confidence contrasts with the recent mood at Zynga, another company known for popular games on Facebook. The San Francisco-based company recently had to cut 18% of its staff as it struggles to change its business model to focus on mobile games.

Others in the field have shown signs of interest in a possible IPO, though. Kabam, which makes “Kingdoms of Camelot” and the movie tie-in racing game “Fast And Furious 6,” last year had signaled its plans to go public by 2014. The company has stayed quiet on that front since then however.

There are indications the stock market would welcome game makers with some hot titles. Japanese game maker GungHo Online Entertainment, which makes “Puzzle and Dragons,” saw its market capitalization surpass that of “Super Mario Bros.” maker Nintendo last month.

Stocks of others in the videogame field–even venerable names like Electronic Arts–have bounced upward lately. A key reason: investors are betting that consumer spending on games, which has slid lately, will rebound with the release of Microsoft’s Xbox One and Sony’s PlayStation 4 later this year.